UK refiners ramped up diesel production in April but were caught out by lockdowns

Quantum Commodity Intelligence - UK refineries ramped up ultra-low sulfur diesel production in April in anticipation of a seasonal rally in demand that failed to happen, date from the UK government showed. 

April deliveries of diesel were around 1.8 million mt in April, the same as March amid lockdown restrictions, and up from around 1.5 million mt in January and February.

But April usually sees a rise in diesel demand, and UK refineries increased production to 1 million mt, up 265,000mt from March and close to pre-pandemic levels of 1.1 million mt in April 2019.

Two years earlier In 2019 April, diesel demand topped 2.1 million mt, up around 140,000 mt from March, a pattern that was repeated in 2019, 2018 and 2017.  

Gasoline demand also flat lined in April and March this year at around 750,000 mt a month, down from 960,000 mt and 900,000 mt respectively in April and March 2019.

Jet fuel deliveries in both April and May was around 260,000 mt, far short of the 1 million mt a month demand two years earlier amid ongoing travel restrictions.

The UK's six refiners continued to cut jet fuel production to the bone, producing just 89,000 mt of the aviation fuel in April, slightly less than the 97,000 mt in March, compared to around 400,000 mt a month two years earlier.

The refineries made a slight excess of gasoline in April, producing 975,000 mt, which was around 25,000 mt up from March.

Overall, refinery production climbed to 3.58 million mt, up around 620,000 mt from April, with fuel oil production also rising around 150,000 mt.